Bill S7454-2013

Relates to the applicability of interest charged for unpaid school district taxes

Relates to the applicability of interest charged for unpaid school district taxes.

Details

Actions

  • May 15, 2014: REFERRED TO EDUCATION

Memo

BILL NUMBER:S7454

TITLE OF BILL: An act to amend the education law, in relation to the applicability of interest charged for unpaid school district taxes

PURPOSE: This bill relates to the applicability of interest charged for unpaid school district taxes.

SUMMARY OF PROVISIONS: Section 1. Section 2023-a of the education law is amended by adding a new subdivision 10 to read as follows: Notwithstanding any other provision of law to the contrary, a School district shall only charge interest or any other penalty authorized by state or local law on the portion of taxes levied that remains unpaid on or after the date such taxes are owed. Interest or penalties shall only begin to accrue on or after the date such taxes are due.

§ 2. This act shall take effect immediately; provided that the amendments to section 2023-a of the education law made by section one of this act shall not affect the repeal of such section and shall be deemed repealed therewith.

EXISTING LAW: Current law does not reflect the actual time interest rates should be charged but in actually accrued.

JUSTIFICATION: School districts split the payment of school taxes due into two separate payments. The first half being due in September and the second half due in November.

This bill changes current law by insuring school districts charge accrued interest or penalties beginning after the date such taxes are due. It prevents school districts and municipalities from charging interest or penalties on tax that has already been paid. In other words, if a person has paid the 1 g half of his or her taxes on time but then fails to pay the 2nd half on time, interest can only be charged beginning on the actual date the 2nd half of the tax was due.

This bill addresses the issue by using the actual due date of the taxes not paid as the starting point for the interest accrual.

LEGISLATIVE HISTORY: None

FISCAL IMPLICATIONS: To be determined

LOCAL FISCAL IMPLICATIONS: To be determined

EFFECTIVE DATE: This bill shall take effect immediately


Text

STATE OF NEW YORK ________________________________________________________________________ 7454 IN SENATE May 15, 2014 ___________
Introduced by Sen. LATIMER -- read twice and ordered printed, and when printed to be committed to the Committee on Education AN ACT to amend the education law, in relation to the applicability of interest charged for unpaid school district taxes THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 2023-a of the education law is amended by adding a new subdivision 10 to read as follows: 10. NOTWITHSTANDING ANY OTHER PROVISION OF LAW TO THE CONTRARY, A SCHOOL DISTRICT SHALL ONLY CHARGE INTEREST OR ANY OTHER PENALTY AUTHOR- IZED BY STATE OR LOCAL LAW ON THE PORTION OF TAXES LEVIED THAT REMAINS UNPAID ON OR AFTER THE DATE SUCH TAXES ARE OWED. INTEREST OR PENALTIES SHALL ONLY BEGIN TO ACCRUE ON OR AFTER THE DATE SUCH TAXES ARE DUE. S 2. This act shall take effect immediately; provided that the amend- ments to section 2023-a of the education law made by section one of this act shall not affect the repeal of such section and shall be deemed repealed therewith.

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